Revenue fell in 3Q25 amid weaker pricing and softer volumes
Sabic posted 3Q25 revenue of SAR 34.3bn, down 7% YoY and 3% QoQ, reflecting lower average selling prices and reduced sales volumes.
Net profit declined on YoY basis due to lower gross profit, other operating income and higher zakat and tax
Net profit for 3Q25 stood at SAR 0.4bn, down 56% YoY, driven by weaker gross margins, reduced other operating income, and elevated zakat and tax charges partially offset by lower SGA costs and improved JV performance etc.
U Capital view
The global petrochemical sector continues to face structural headwinds, weighed down by subdued industrial demand and persistent supply overhang, both exerting sustained pressure on margins. Heightened uncertainty around trade flows and regulatory shifts further amplifies volatility across commodity markets. In light of the tepid demand outlook and the lack of a meaningful recovery in sector fundamentals, we maintain our Hold rating on the stock, with a target price of SAR 63.4/share.